Empirical Study on Enterprise Productivity and Spatial Preference in Small Towns in China: A Perspective Based on Heterogeneity of Enterprise and Small Towns
Abstract: Based on the survey conducted in towns by the Department of Village Construction, the Ministry of Housing and Urban-Rural Development, this paper analyses the spatial preference and productivity of enterprises in small towns. This paper finds that there are significant differences between enterprises in small towns and those in large or medium cities. Enterprises in small towns generally have shorter operating time, smaller scale, lower output value and profit. These enterprises are mainly production-oriented companies in the fields of traditional agriculture, industry and manufacturing, and they are closely related to the towns they located in. Enterprises in small towns have spatial preference for local resources and materials, location and transportation, social relationship, land and labor cost. Meanwhile, they are mainly faced with constraints such as high cost, difficult market expansion, financing, recruitment, tax burden and so on. Furthermore, based on the perspective of heterogeneity, this paper employs the quantile regression model to analyze the impact of enterprise heterogeneity and small town heterogeneity on productivity of enterprises. The results show that enterprises at different productivity levels have different spatial preferences for towns. For small town enterprises with low efficiency, they are more sensitive to human cost and land use cost. With the development of enterprises and the improvement of production efficiency, the policy environment, market environment and investment environment of industrial development in the cities and towns become more important factors.